10.5.2007: Meldung: Ormat Technologies, Inc.: First Quarter 2007 Results
Tuesday May 8, 9:50 pm ET
RENO, Nev., May 8 -- ORMAT Technologies, Inc. today announced financial results for the first quarter ended March 31, 2007. For the first quarter, total revenues were $61.7 million as compared to $60.3 million for the first quarter of 2006, an increase of 2.4%.
For the quarter ended March 31, 2007, the Company reported a net loss of $5.8 million, or $0.15 per share of common stock, compared to net income of $7.9 million, or $0.25 per share of common stock (basic and diluted) for the same quarter in 2006. The net loss is mainly due to the cumulative effect of several unrelated events, which include the increase in maintenance costs incurred in the Heber 1, Puna and Ormesa projects, the reduction in revenues as a result of a delay in the completion of the Galena 2 and the Steamboat Hills projects, the failure of turbines at our Steamboat 2 and 3 projects, an increase in construction costs in the Products Segment and settlement expenses of an outstanding dispute regarding royalty payments.
Commenting on the quarter"s results, Dita Bronicki, President and Chief Executive Officer of Ormat, stated: "While the financial results of the first quarter were disappointing, we have resolved most of the operational issues which were the main causes of the first quarter losses. Although the occurrence of such operational issues is not uncommon in our industry, it is unusual for them to converge in one quarter.
"We expect that in the following three quarters the gross margin in our Electricity Segment will be in line with the gross margin that we experienced in 2006 and expect to be profitable in each of the remaining quarters of 2007.
"We have now completed the construction of the additional 10 MW at the Ormesa complex and brought the complex to its full generating capacity. We have also completed the construction of the Galena 2 and Steamboat Hills projects, with the Galena 2 project having declared commercial operation in early May 2007, and the Steamboat Hills project operating at its full planned generating capacity."
Electricity revenues for the quarter were $43.7 million, which were flat on a year-over-year basis. Included in the quarter were full quarter revenues derived from the Zunil Project in Guatemala, which was consolidated as of March 13, 2006. Revenues from the Electricity Segment were negatively affected by the scheduled maintenance at the Heber 1 plant, an unforeseen delay in the permitting of Galena 2, as well as the failure of turbines in the Steamboat 2 and 3 projects, neither of which were manufactured by us.
Products Segment revenues for the quarter were $18.1 million, an increase of 9.0% as compared to $16.6 million for the same quarter of 2006.
Adjusted EBITDA for the quarter ended March 31, 2007 was $13.4 million, compared with $28.5 million in the first quarter of 2006. Adjusted EBITDA includes consolidated EBITDA and the Company"s share in the operating income and depreciation and amortization totaling $4.1 million for the quarters ended March 31, 2007 and 2006 related to the Company"s unconsolidated investment interest of 50% in the Mammoth project in California, and 80% in the Leyte project in the Philippines. The reconciliation of GAAP net income or loss to Adjusted EBITDA is set forth below in this release.
As of March 31, 2007, the Company had cash, cash equivalents and marketable securities of $74.7 million compared to $116.7 million as of December 31, 2006. The decrease is mainly attributable to the combination of the funding of capital expenditures and the repayment of long-term debt to the parent company, Ormat Industries Ltd., and to third parties.
On May 8, 2007, Ormat"s Board of Directors approved the payment of a quarterly cash dividend of $0.05 per share pursuant to the Company"s dividend policy, which targets an annual payout ratio of at least 20% of the Company"s net income, subject to Board approval. The dividend will be paid on May 29, 2007 to shareholders of record as of the close of business on May 22, 2007. The Company expects to pay a dividend of $0.05 per share in the next two quarters as well.
"Our organic growth plan is proceeding substantially as scheduled and we have added from the beginning of the year approximately 24 MW. We made several advancements within our Recovered Energy Generation (REG) business, as we continue to see demand for this technology increase," Ms. Bronicki commented. "In addition to the power purchase option agreement we signed at the beginning of the year with Basin Electric relating to an additional five REG power plants, we have entered into contracts to supply two REG plants to EnPower Green Energy Generation, as well as a contract with ENAGAS, S.A. of Madrid for the supply of one REG plant in an LNG (Liquefied Natural Gas) terminal, a new and promising application for our REG units. Recovered Energy Generation is an exciting new business for us, one that we will continue to grow through both our Products and Electricity Segments."
Commenting on the outlook for 2007, Ms. Bronicki said: "Following our first quarter earning results, we expect our 2007 Electricity Segment revenue to decrease by $6 million to approximately $214 million based on today"s oil prices. We also expect $18 million of revenue from our share of electricity revenue generated by Mammoth and Leyte, which are accounted for under the equity method. With regard to our Products Segment, we currently expect that our 2007 revenue will be in line with the previously given guidance, of between $65 million and $72 million."
Conference Call Details
Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 9:00 a.m. U.S. E.D.T. on Wednesday, May 9, 2007. The call will be available as a live, listen-only webcast at www.ormat.com . A 30-day archive of the webcast will be available approximately 2 hours after the conclusion of the live call. To listen to a replay, please call 1-877-519-4471 in the United States and Canada and 1-973-341-3080 for international callers and utilize code 8695981.
About Ormat Technologies
Ormat Technologies, Inc. is a vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal power plants. Ormat is a pioneer in Organic Rankine Cycle (ORC) technology and a leader in the manufacture of ORC power equipment.
It also designs, develops and builds, and owns and operates, recovered energy-based power plants. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services. Ormat products and systems are covered by approximately 70 patents. Ormat currently operates the following geothermal power plants: in the United States -- Brady, Heber, Mammoth, Ormesa, Puna and Steamboat; in the Philippines -- Leyte; in Guatemala -- Zunil; in Kenya -- Olkaria; and in Nicaragua -- Momotombo. In the U.S., Ormat owns and operates four OREG1 Recovered Energy Generation plants.
Source: Ormat Technologies, Inc.